According to Accenture, niche software platforms are the new normal for merchants and processing a payment is just a small part of the overall value proposition.
For example, marathon race promoters use ticketing and event management platforms to register runners and get paid for ticket sales, city governments use fine management platforms to collect parking ticket payments, and nonprofits use donation management platforms to facilitate donor communication and collect donations.
“Picture a rocket ship being pulled by a horse and buggy and you’ll see the current landscape of how high-tech software platforms are negatively affected by old-school payment processors.
We come from Visa, Apple, and PayPal and we are here to make payments painless for platforms,” said Laura Wagner, CEO of Digitzs.
To get the ball rolling, the ticketing, fine management or donation management platform must send their users (the marathon race promoter, the city government or the nonprofit) to “go get” a merchant account and hope that they return. The reason for this is clear; the person buying the ticket, paying the ticket or making the donation expects to see the merchant’s name on their bank statement.
In order to facilitate merchant accounts, software platforms have to staff up internally to connect merchants to their desired payment gateway and must maintain the integration to that gateway year after year.
“Asking someone to ‘go get’ a merchant account is like asking them to jog around the block before handing over the keys to their new car,” says Wagner. “It takes 1-3 weeks, requires a contract with 1-3 different companies and is basically no fun. Half the time, the platform loses the sale. And even after the merchant account is obtained, the merchant must leave the platform’s website to perform refunds, see settled transactions and handle chargebacks. It’s a poor user experience.”
To us, software platforms are partners
As software in each niche becomes more competitive, these large invoices can cause a merchant to shop for a similar, less expensive software platform. With Digitzs operating invisibly in the background, the value-added fee can be split out and paid directly to the platform each day, and the merchant can receive the net amount they expect for the price of the ticket, fine or donation.
These days, virtually hundreds of software platforms target the same user/merchant. Digitzs caters to visionary platform CEOs and Founders who understand that building payments into their UI/UX is no longer an option if they want to lead in their sector.
One such visionary is Mark Miller, CEO of Ticket Socket. “We looked deeply into virtually every modern payment option available, and Digitzs is the first provider to give us everything we need in a completely white label and risk-free solution. After we launched Ticket Socket Payments (via Digitzs) we closed a large merchant processing $100 Million per year.”
“To us, software platforms are partners,” said Wagner. “To help exclusive, high-volume partners grow, Digitzs recently launched a program called SaaSi (Sales Acceleration as a Service). Digitzs also helps select partners source expansion capital via Digitzs venture arm called PayLab.
Digitzs makes payments painless for niche software platforms by facilitating real-time white label merchant accounts and merchant reporting from within the platform’s website and brand; thus, we have chosen Digitzs as one of the most promising payment and card solution providers of 2017.